OIL: Nigeria Cuts October Crude OSPs
Sep-26 12:45
Nigeria cut its OSP price for Qua Iboe crude in October to a $1.30/b premium to dated Brent, according to a price list seen by Bloomberg.
- This compares to a $1.97/b premium for September.
- The Bonny Light OSP was cut to an 89 cents/b premium over Brent for October, down frm a $1.54/b premium in September.
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BONDS: OAT/Bund spread edges towards 80.00bps
Aug-27 12:45
- No Obvious trigger for the sudden selling in the French OAT, but there might be some OAT/Bund spread at play, since it is widening towards the 80.00bps handle.
- The April high and highest print since January stands at ~79.83bps.
- OAT is now heading towards the just mentioned 121.54 level, ahead of the Yields.
(Chart source: MNI/Bloomberg Finance LP).
OAT: French OAT is getting sold off here
Aug-27 12:32
- French OAT is getting hit here, testing session low, some 3k sold in the past few minutes, all cumulative Volumes.
- Yesterday's low is at 121.54, but initial level is still eyed at 3.550% = 121.39, followed by 3.631% = 120.61 (highest Yield print since Nov 2011).
- Other Bonds (Germany and US Treasuries) are getting dragged lower by France.
BUNDS: Looking Through Soft 7-Year Auction
Aug-27 12:29
Note that Bunds haven’t shown much in the way of sensitivity to the technically uncovered 7-Year auction that came this morning.
- This added to the recent trend of softening demand at German primary offerings, with last week’s 30-Year offering also being technically uncovered (albeit with that instance coming within a dual tranche auction).
- Desks pointed to the potential for softer demand ahead of today’s auction, with the 7-Year zone falling between the demand sweet spots of 5s & 10s, making for fewer natural buyers in this area of the curve (as well as a more cumbersome/less exact hedging process).
- This, combined with focus on the resumption of more meaningful supply after the summer break and the incoming increase in German issuance, likely factored into soft demand at today’s offering.
